Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 10, Problem 26EA
1.
To determine
Calculate
2.
To determine
Calculate inventory turnover ratio.
3.
To determine
Calculate accounts receivable turnover ratio.
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The following data are taken from the financial statements of Colby Company.
Accounts receivable (net), end of year
Net sales on account
Terms for all sales are 1/10, n/45
Accounts Receivable turnover
Average collection period
(b)
2022
$550,000
2022
2021
4,300,000 4,000,000
7.9 times
$540,000
2021
7.5 times
46.2 days 48.7 days
What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average
collections period.
Consider the comparative balance sheet and income statement for Starbucks provided in the shown Figures . Based on these financial statements, determine the following for the year September 30, 2018: Solve,d. Acid test ratio. e. Accounts receivable turnover. f. Inventory turnover.
Use information attached 1-3 and 1-5 to answer the following
For the years ended December 31, 2006 and 2005, assume all sales are on credit and then compute the following: (a) collection period, (b) accounts receivable turnover, (c) inventory turnover, and (d ) days’ sales in inventory. Comment on the changes in the ratios from 2005 to 2006.
Chapter 10 Solutions
Financial Accounting
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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License